Swedish pension fund drops non-ESG funds

The Swedish Fund Selection Agency says it is looking to invest $93 billion AUM in ESG funds only.

The agency manages assets for Sweden’s public premium reserve retirement platform and will launch a series of searches for money managers to run a total of about one trillion Swedish kronor ($93.3 billion) in defined contribution assets and will only accept submissions from firms that follow ESG rules, the agency says. The platform forms the country’s mandatory defined contribution system and has about €200 billion ($212.9 billion) in total assets.

The selected firms will have operations in Europe and will manage UCITS funds that are complaint with the European Union’s ESG rules. Managers will be excluded from participation if they breach applicable environmental, social or labor law obligations. Fund managers with at least 5 billion Swedish kronor in total assets under management will be considered and cannot have more than 5% of assets under management in fund of funds. Exchange-traded funds will not be considered.